A few years ago I wrote on OSNews several articles (1,2) about workstations. After three years I had to stop, because there were no workstations left on the market, they became legacy and were not sold any more. Now with the rise of mobile devices with touchscreen and wireless network connectivity virtually everywhere, the question becomes valid, what will happen with the desktop computers, are they still needed, or will they follow the workstations on their way to computer museums?

Games on PC just suck. You have to buy the best hardware to play the games, and update it every year, otherwise you get choppy fps. It's a mess. Not to mention the horrible quality of PC games these days, like GTA 4 and Fallout 3, two awesome games that have so many bugs on the PC version that you get more angry then have fun with then.

They only require updating every 3 or 4 years, and already the PC offers far greater FPS and graphics than the PS3 is capable of.
I can't believe you're suggesting playing fallout3 on a console.
I have to install mods to make it playable, because the menu text is FRAKKIN MASSIVE to support console players.
With a Bethesda Softworks game, it's all about the mods; 25% of the experience is the 'core' game, the other 75% is made by modders. Consoles can't install mods, they can't use Wrye Bash to make them work together even if they could.... etc etc.

That, and it's impossible to play an FPS without a keyboard and mouse.
Gamepads are horrible.
Better graphics, proper controls, moddability, smoother gameplay, the ability to use the same device for advanced 3d rendering, modelling, image modification and creation... etc etc.
Honestly, consoles won't get my thumbs up until they are running a PC operating system (Linux?), still have the same ease of running games, but also support a keyboard/mouse and desktop software like openoffice, Inkscape and Emesene.

The desktop will eventually die, but it's going to be around for more than a decade - until we have neural links (these are being added to compiz :p), like say.... the holobands of Caprica?, the keyboard and mouse reigns supreme for content creation.
Not to mention the desire for dual monitors.
There will probably always be the desire for localised computers which offer far superior power to the cloud solution, and greater security.
Desktops will fade, but I don't think we'll ever see them die - they'll simply be for extreme power users.

Meanwhile, if consoles added mind control/keyboard+mouse support with Linux's mix of desktop applications (which would probably cause windows/osx progs to be ported to the console), we would see a single hardware base to aim for, as well as far more powerful devices (By default, have a simplified Android-like interface on the console, plus autoboot into games, but allow it to be swapped out for gnome/kde and still run the games?)

Meanwhile, my PC, nearly 3 years old, now, with the addition of a nearly 5 year old video card (underclocked, at that), manages to get me by.

If you are a hardware fetishist, that's not everyone else's problem. The quality sliders go to the left, just like the volume knob.

When consoles get keyboards and mice, and the games use them, such that PC-friendly games can be played with some efficiency on consoles, and when the console makers get out of their vendor-locked multiplayer network bullshit (an Xbox360 and PS3, FI, should be able to use the same game servers, if they have the same game released for them), call me.

Until then, me and my PC will wait for, and then play the Hell out of, Starcraft II, Diablo III, MMOs, any new Civ games or Civ-alikes, FOSS games (necessarily PC-only), and mods for other so-so games (the big media house model makes for great engines shipped with so-so content), that either don't exist on consoles, are are laughable on them.

What has been in full swing, though, is that games that would have been better outside of the PC, except that the PC was where the interesting hardware advancement was going on, are now moving to consoles. And that's just fine. For some things, a 10' interface and a gamepad are where it's at.